Reverse mortgages are creeping into the conversation for retirement income options.
Source: How America’s Most Hated Home Loan Is Staging A Comeback
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Hmmm, “most hated”?
I’d reserve that for the sub-prime “no doc” mortgage that caused everyone much more pain!
No?
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EFF Supporter
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FJohn Reinke
Consultant at Technology Legacies LLC
Advisor, Computer Governance Committee at Manhattan College
Editor / Publisher at Jasper Jottings
Greater New York City Area
One Armed Paperhanger JJ Positraction JJ Endnotes Downsize DC
Philosophy of Liberty
I have NOT received any gagged governmental information requests
So why do they take these “lemons” back in the first place. If the reverse mortgage holder has a “lemon”, why does HUD have to take it at “face value”. Time to stick the losses back where they belong. No?
I would Have to disagree. I have been a HUD vendor for over 10 years. The reverse mortgage is a silent plague that most taxpayers on not even aware of. One of the many problems related to the HECM is lack of over-site post underwriting. The borrowers are elderly people that neither have to finances or the desire to maintain the property. 98% of the properties that are conveyed to HUD are in horrendous condition and are far below the value of the reverse mortgage. In addition there is a long lag time for HUD to obtain clear title to the property. I have properties in my inventory that have been sitting unoccupied for years with no heat or power. By the time HUD takes possession they are uninhabitable. HUDs answer is to sell the notes on these properties in large baskets at a great discount to large investment companies. Thus never recouping their investment. Who gets stuck with the deficit on the loan. The taxpayers.